Ch. 8 - Segmenting and Targeting Markets

In order for Apple to meet the needs of its target markets, it has to first successfully divide the specific market into meaningful, relatively similar and identifiable segments or groups. One of the strategies that Apple is using to segment its markets is referred as geographic segmentation. Apple, in the USA, locates its retail stores based on the population and the density of each state. For example, in  California, the most populous state of the US, Apple currently hosts 52 retail stores, whereas in less populous states such as Maine, Apple hosts as little as one store. Two addition strategies that Apple uses to further segment its market are known as demographic and psychographic segmentation. Demographic segmentation is of great importance for a company because it targets groups of people based on their age, gender, income, ethnic background and family life cycle. Every segment of this subgroup has different interests and needs which poses great challenges for Apple's marketing managers to effectively weave marketing mixes appropriate to meet the needs of this segment.  But, it is the psychographic segmentation that is based on the personality, motives and lifestyles of a group that paves the road of success for Apple. Apple, is known for its efforts in creating stylish, elegant and upscale products, such as the colorful iPhone 5C which besides having a large variety of features satisfying every personality regardless of its motives or needs. It also allows you to choose a plastic body of the color that fits into your unique lifestyle. Apple in this segmentation is trying to appeal to low or high income groups, teens, adults and baby boomers and ultimately improve every lifestyle, no matter its diversity.